• Revenue of compression systems sales was higher by 4% to Rs 122.74 crore and that of transmission products was lower by 53% to Rs 13.86 crore. Thus the aggregate sales of both compression and transmission products was lower by 7% to Rs 136.60 crore. But the company accounted a revenue of Rs 26.12 crore which was not there in the corresponding previous quarter as part of operating income and thus escalated the operating income (excluding other operating income) was higher by 10% to Rs 162.72 crore. Though sales grew by 10%, the value of production for the quarter was lower by 9% to Rs 151.14 crore.
• Inspite of early single digit growth in revenue, the segment profit of compression products was higher by 24% to Rs 28.53 crore as the segment margin expand by 380 bps to 23.2%. On the other hand hurt by lower sales, which could not recover the fixed cost, the segment profit of transmission products was a loss of Rs 2.97 crore compared to a profit of Rs 3.60 crore in the corresponding previous period.
• The 310 bps expansion in operating margin is largely on account of sharp 990 bps fall in material cost as % to sales net of stocks. The staff cost was down by 10 bps to 12.2%. Though the other expenses was up by 410 bps, the lower material and nearly flat staff cost has facilitated growth in OPM.
• Other income was up by 1% to Rs 2.92 crore. The interest cost was lower by 61% to Rs 9 lakh. But the depreciation was higher by 90% to Rs 3.65 crore and thus the growth at PBT moderated to 26% to Rs 27.20 crore.
• The taxation was higher by 40% to Rs 10.69 crore and the effective tax rate for the quarter was 39.3% compared to 35.5% in the corresponding previous period. Thus hurt by higher tax incidence the growth at net profit further moderated and stood at 19% to Rs 16.51 crore.

Consolidated sales for the quarter was lower by 7% to Rs 139.11 crore and with the operating profit margin expand by 420 bps to 18.1%, the operating profit was higher by 21% to Rs 25.15 crore. The sharp jump in other operating profit is due to expenses capitalized to the tune of Rs 23.25 crore in Q4FY14 compared to nil in the corresponding previous period. But for this the OPM would have seen sharp erosion. With other income nearly flat at Rs 2.18 crore (up 0%) and interest staying lower by 61% (to Rs 0.09 crore the PBDT was higher by 20% to Rs 27.24 crore. But with depreciation stand higher by 90% to Rs 3.65 crore, the growth at PBT moderated to 13% to Rs 23.59 crore. After accounting for higher tax incidence (up 40% to Rs 10.69 crore) the PAT was lower by 2% to Rs 12.90 crore. After accounting for lower share of profit from associates the fall in net profit was 8% to Rs 14.21 crore.

Yearly performance

Standalone sales for the period was lower by 7% to Rs 517.07 crore and with 80 bps contraction in OPM the operating profit was lower by 12% to Rs 66.12 crore. The other income was higher by 10% to Rs 8.91 crore. The interest was lower by 73% (to Rs 0.35 lakh) and the depreciation was higher by 15% to Rs 13.21 crore. Thus the PBT was lower by 13% to Rs 61.47 crore. Hurt further by higher tax incidence the net profit was lower by 18% to Rs 38.83 crore.

Consolidated sales was lower by 11% to Rs 490.95 crore and the operating profit was lower by 16% to Rs 63.25 crore and the PAT was lower by 24% to Rs 35.22 crore. Eventually the net profit was lower by 25% to Rs 36.53 crore given 44% fall in share of profit from associates.

Others

The company to pay a dividend of Rs 10 per share (or 100%) of face value of Rs 10 each for 2013-14.

The stock hovers around Rs 424.30.